Correlation Between THAI BEVERAGE and Equinox Gold
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Equinox Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining THAI BEVERAGE and Equinox Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Equinox Gold Corp, you can compare the effects of market volatilities on THAI BEVERAGE and Equinox Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in THAI BEVERAGE with a short position of Equinox Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Equinox Gold.
Diversification Opportunities for THAI BEVERAGE and Equinox Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THAI and Equinox is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Equinox Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Gold Corp and THAI BEVERAGE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on THAI BEVERAGE are associated (or correlated) with Equinox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Gold Corp has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Equinox Gold go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Equinox Gold
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 0.44 times more return on investment than Equinox Gold. However, THAI BEVERAGE is 2.27 times less risky than Equinox Gold. It trades about -0.08 of its potential returns per unit of risk. Equinox Gold Corp is currently generating about -0.19 per unit of risk. If you would invest 38.00 in THAI BEVERAGE on October 11, 2024 and sell it today you would lose (1.00) from holding THAI BEVERAGE or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
THAI BEVERAGE vs. Equinox Gold Corp
Performance |
| Timeline |
| THAI BEVERAGE |
| Equinox Gold Corp |
THAI BEVERAGE and Equinox Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Equinox Gold
The main advantage of trading using opposite THAI BEVERAGE and Equinox Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Equinox Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Equinox Gold will offset losses from the drop in Equinox Gold's long position.| THAI BEVERAGE vs. TRAVEL LEISURE DL 01 | THAI BEVERAGE vs. Ebro Foods SA | THAI BEVERAGE vs. PLAYTIKA HOLDING DL 01 | THAI BEVERAGE vs. TYSON FOODS A |
| Equinox Gold vs. Reinsurance Group of | Equinox Gold vs. Lifeway Foods | Equinox Gold vs. National Beverage Corp | Equinox Gold vs. THAI BEVERAGE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |